Marshalls beats market slowdown with strong rise in sales

Marshalls supplied the paving outside York Minster

The Elland-based firm said group revenue rose 10 per cent to £542m in the year to December 31. Excluding the positive impact of concrete brick manufacturer Edenhall, which was acquired in December 2018 for £17m, revenue rose 3 per cent.

The firm said sales in the public sector and commercial market, which represent 69 per cent of group sales, rose 15 per cent. It added that the Edenhall business traded strongly in 2019 and its operational integration into the Marshalls Group is now complete.

The group updated its Design Space office in central London during the year to offer designers and clients a better experience and to showcase its full range of capabilities and technical and design solutions.

It has also opened a new Marshalls Design Space in the heart of Birmingham, supporting the major redevelopment of the city.

Martyn Coffey, chief executive, said: "We are continually developing our product ranges and systems to ensure that we remain at the forefront of innovation and technology within our industry."

Sales to the domestic market, which represent 26 per cent of group sales, were flat. The group said this result was ahead of the overall domestic market in 2019.

The firm said the domestic market was softer in the second half, hit by poor weather conditions, but the group managed to improve operating margins.

Marshalls said its strategy in the domestic market is to drive sales through the Marshalls Register of approved domestic installers. Mr Coffey said this ensures a consistently high standard of quality, customer service and marketing support. He said the Marshalls Register is unique and includes 1,900 installer teams.

International revenue rose 13 per cent during 2019 and represents 5 per cent of group sales.

On a pre-IFRS 16 basis, pre-tax profit rose 11 per cent to £70m.

Mr Coffey said the group is closely monitoring the rapidly evolving situation of the coronavirus outbreak. So far, it has seen no discernible impact on the business.

He said the firm's new 5 Year Strategy will continue to deliver sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure. It said the strategy is underpinned by positive market fundamentals, focused investment plans and an established brand.